Saturday, 23 March 2013

A new outsourcing fever has gripped India

India's animation sector is
witnessing a major boom. Overseas entertainment giants like Walt Disney Imax
and Sony are increasingly outsourcing cartoon characters and special effects to
Best Animation Company in India for commercials and computer games.

So what makes India a hub
for animation? Why is the sector experiencing exponential growth? In this
special series, we take a look at what makes India shine in the world of animation.

The total cost for making a
full-length animated film in America is estimated to be $100 million to $175
million. In India, it can be made for $15 million to $25 million.

C K Prahlad, an animation
consultant based in Bangalore, says the biggest advantage is the cost factor.
"Indian animation companies are charging extremely low rates compared to
other countries. That is attracting the Hollywood companies to outsource their
animation film series to the Best Animation Company in India,"
he said.

Major US animation studios
and producers are realizing this huge cost advantage that India offers, that’s
why they are approaching to Best Animation Company in India

"Due to changing
viewing habits, channels or networks are being forced to bring down license
fees. As a result, the volume of work has been dropping.

In this situation, India's
advantage of low production costs could be a boon to the domestic animation
industry," said Margaret Dean, Sony Pictures' head of family entertainment
group and a consultant to various animation studios in the US, during a recent
India visit.

According to the National
Association of Software and Services Companies (Nasscom), the total revenues of
the 3d animation services in India were estimated by between $200 million and $300
million in 2004.

Nasscom estimates the
animation sector grew at a rate of over 20 per cent last year. "Demand for
animation production services from India is growing with the emergence of an organized
animation production sector, with state-of -the-art of work required for
international TV program production, at substantially lower costs," a
Nasscom report said.

Last year, a Nasscom study
on the 3d animation services showed that the global animation production market is set for
major growth. The study, which is based on multiple statistical projections on
the market, from segments such as industry sources, Pixel Inc and Arthur
Andersen (Study on the Entertainment and Media sector) forecast that the
global animation market would generate revenues worth $50-70 billion this year.

But which are the countries
that India is competing with in getting animation outsourcing?

"Primarily, we are
competing with China. But even here, our quality standards are much higher than
Chinese studios," argues Jayakumar.